No cross-holdings with Asia Pulp & Paper: AFP

No cross-holdings with Asia Pulp & Paper: AFP

SINGAPORE (Dow Jones): Singapore-listed Asia Food & Properties Ltd. (AFP) said Wednesday it has no cross-share holdings with Asia Pulp & Paper Co. (APP) even though the two companies share the same parent.

The two are owned by the Indonesia Widjaja family, but the debt troubles of APP has no bearing on AFP, the company said in a statement.

The company's statement comes a day after its shares hit an all-time low on worries that APP's debt woes will spill over to AFP. In addition, markets were worries that the Widjajas may sell stakes in AFP to rescue debt-laden APP.

AFP said while there are several existing trading relationships and commercial transactions between APP Group and itself, the aggregate value of the transactions between the two "remains minimal in relation to the overall size of the AFP Group's operations."

The company said, "The development at APP has no material bearing on the AFP group of companies," which include its Jakarta Stock Exchange-listed property company PT Duta Pertiwi Tbk, Singapore Exchange-listed Golden Agri-Resources Ltd. and its Jakarta-listed unit PT SMART Tbk.

AFP said its group of companies are independently managed and listed and governed by the rules and regulations of the Stock Exchanges of both Singapore and Jakarta.

"Since AFP's inception, the Widjaja family has been a substantial shareholder and intends to continue to hold that position," AFP said in the statement.

However, the statement didn't disclose why the Widjajas have recently sold more than 100 million shares in AFP, nor did the statement disclose whether AFP has provided any corporate guarantees to APP or its other affiliates.